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1 <br />LOAN AGREEMENT <br />This Loan Agreement (this “Agreement”) is entered into effective as of <br />____________________, 2014(“Effective Date”) by and between Davis Street Family <br />Resource Center, a California non-profit organization(“Borrower”) and the City of San <br />Leandro, a charter city formed under the laws of the State of California(“Lender”). Lenderand <br />Borrower are hereinafter collectively referred to as the “Parties.” <br />RECITALS <br />A. Borrower is the fee simple owner of that certain real property located at 1190 <br />DavisStreet,in San Leandro, California, AlamedaCounty Assessor’s Parcel Number <br />____________and more particularly described in Exhibit Aattached hereto(“Property”). <br />B. Borrowerhas requested, and Lender has agreed to provide, a loan (“Loan”) <br />pursuant to the terms and conditions hereof for the purpose of providing Lender bridge financing <br />to pursue establishment of a community healthclinic. <br />C.Concurrently herewith,Borrower shall execute a promissory note (“Note”)in the <br />amount of the Loan, and a Deed of Trust, Assignment of Rents, Security Agreement and Fixture <br />Filing (“Deed of Trust”),which shall provide Lender with a security interest in the Property. <br />This Agreement, theNote, and the Deed of Trust are collectively hereinafter referred to as the <br />“LoanDocuments.” <br />NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency <br />of which are hereby acknowledged, the Parties hereby agree as follows. <br />ARTICLE I <br />LOAN TERMS <br />1.1 LOAN AND NOTE. Lenderagrees to loan to Borrower, and Borrower agrees to <br />borrow from and repay to Lender, thesum ofone million five hundred thousandDollars <br />($1,500,000.00) upon the terms and conditions and for the purposes set forth inthis Agreement. <br />The Loan shall be evidenced by the Note,which shall bedated as of the Effective Date and <br />executed by Borrower substantially in the form attached hereto as Exhibit B. The Note shall be <br />secured by the Deed of Trust executed by Borrower as trustor for the benefit of the Lender <br />substantially in the form attached hereto as Exhibit C. Provided that Borrower has complied <br />with all conditions precedent to disbursement of the Loan set forth in Section 2.3, the Loan <br />Proceeds shall be disbursed in accordance with Section 2.2hereof. Lendershall disburse Loan <br />Proceeds only for the purposes set forth in Section 2.1. <br />1.2 INTEREST RATE; PAYMENT DATES; MATURITY DATE. Interest shall <br />accrue on the outstanding principal balance of the Loan at a rate of four and one-halfpercent <br />(4.5%) simple interest per annum. Monthlypayments shall be due and payable in accordance <br />with the terms set forth in the Note. The entire outstanding principal balance of the Loan <br />together with accrued interest and all other sums due under the Loan Documents shall be payable